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For Immediate Release

US Mobile TV and Video Poised For Continued Growth

Independent US Study Finds Significant Interest in Mobile TV and Video—78% of Consumers Predict an Increase in Demand by 2010

Toronto, ON — 10 March, 2009

QuickPlay Media, the premier provider of mobile TV and video solutions, today revealed the results of its second annual independent Market Tools survey focused on mobile TV and video consumption in the US. The online survey of approximately 1000 U.S.-based mobile subscribers between the ages of 18 and 35 reveals some compelling new insights into the evolving viewing habits and preferences of today’s consumer.

The 2009 independent Market Tools survey shows that consumers are confident in the uptake of mobile TV and video, with 78 percent expecting an increase in usage by 2010. Additionally, the number of people watching TV and video content on their mobile device has remained steady from 2008 to 2009 at 35%. For those who have not tried a mobile TV and video service, perceived cost continues to represent the biggest barrier to adoption with 58 percent indicating that it is the number one reason they have not viewed TV and video on their mobile phone. Looking ahead, the survey revealed a significant level of interest in mobile TV and video and that overall awareness is on the rise Specific findings include:

55 percent of respondents stated they are interested in mobile TV and video.
Nearly half (46 percent) of respondents are aware that their carrier offers a mobile TV and/or video service, a clear improvement from the 35% percent seen in the 2008. This change provides a strong indication that video services are benefiting from the extensive marketing efforts around multimedia-enabled devices such as the iPhone™ and Blackberry® Storm™.

“These results corroborate other recent research from IDC and Nielsen, both of which provide strong indication that the mobile TV and video industry is gaining momentum,” said Wayne Purboo, president and CEO, QuickPlay Media. “In 2008, we saw our customers introduce innovative pricing options designed to connect consumers with high-interest premium content and increase their marketing efforts. Looking ahead, we expect to see wireless carriers continue on this path as they work to grow adoption and the associated revenues of mobile entertainment services.”

The survey further delves into the role that multimedia-enabled phones will play in the growing adoption of mobile TV and video services. Specifically, the results found that while slightly less than a quarter of consumers are using a multimedia-enabled phone (24%) these devices will play a critical role in enticing consumers to watch TV and video on their mobile phone. Specific findings include:

38 percent said that if they were considering changing wireless carriers, their ability to offer the latest multimedia-enabled PDA/smart phone would impact their decision to choose that carrier.
41 percent of respondents stated that they would be more likely to watch TV and videos on their phone if they owned a multi-media-enabled PDA/smart phone. This point was corroborated in a May 2008 IDC report which stated that mobile TV/video adoption is most common among converged mobile device owners, who exhibited a penetration rate of 16.9% (compared to the 4.7% overall mobile TV/video penetration rate)¹.

The survey also found that improvements to mobile phone plans could stimulate adoption. Currently, most consumers have monthly voice and data plans which have the opportunity to gain even greater adoption with 48 percent stating they would be more likely to subscribe to such a plan if a set amount of basic video content was included in the package (i.e. free comedy clips, movie trailers). The survey also found that customers paying for content remains the dominant model with the majority (72%) of those currently viewing mobile TV and video content indicating that they are paying for it. This finding is consistent with research from IDC, which predicts that in 2009, paying viewers will make up 80 percent of all mobile TV/video consumers¹. Lastly, the survey found that consumers are also willing to tap into alternative ad-supported models in exchange for free access to mobile TV and video content. Specific findings include:

49 percent of respondents have a monthly voice and data plan through their wireless carrier versus 38 percent who currently use a monthly voice-only plan.
51 percent said that they would be willing to accept advertising in return for free TV and video content versus 54 percent in 2008.

Video viewing habits have also seen a noticeable shift in terms of where consumers are watching mobile content. Most notably, 30 percent of consumers are watching TV and video on their mobile device when at home versus 11 percent in 2008. This trend demonstrates that the mobile phone is beginning to gain status alongside other in-home options such as the television and the computer. Consumers also continue to show a preference for snacking on content instead of setting aside dedicated viewing times. Specific findings include:

25 percent respondents view content in between daily activities, 16 percent while in transit (i.e. on the bus, etc.) and 11 percent while waiting in line.
66 percent said they would consider the ability to pause and resume content a deciding factor in whether or not they would watch longer forms of content, such as a full length movie. This number represents an increase from the 57 percent figure reported in the 2008 survey.
Of those watching mobile TV and video, 45 percent have spent 11 to 30 minutes watching a TV show or movie on their mobile phone with 30 percent having spent 31 minutes or longer doing so. Additionally, 21 percent are using mobile TV and video services more than once a week.

“With the growing adoption of media friendly mobile devices consumers now have a wide variety of viewing options,” said Scott Ellison, vice president, mobile consumer services at IDC. “What we have seen is that these alternative channels such as online and mobile TV are not reducing traditional TV viewing but rather spurring consumers to spend additional time viewing content. As a result, the arrival of these new options will ultimately drive an increase in both total television viewing and audience size.”

Further interesting findings of the survey include:

74 percent of respondents stated that they have not viewed an ad on the mobile phone versus 83 percent in 2008. This finding may suggest that mobile ad penetration on is on the rise and/or that the consumer’s ability to recall ads viewed on mobile is stronger.
51 percent of respondents believe that Barack Obama’s use of mobile technology during the campaign will carry over into his tenure as President.

Full results of the 2009 survey can be downloaded at the link below or by contacting Doug Fraim at fama PR at 617-758-4176 or via email at quickplay@famapr.com.

Download survey results.

About QuickPlay Media

QuickPlay Media is the premier provider of mobile video solutions for companies offering video and TV services over broadband wireless networks. The company’s proven solutions offer the fastest and most flexible way to manage, distribute and monetize mobile TV and video for mobile operators and media companies worldwide. QuickPlay Media Inc. is headquartered in Toronto, with sales offices throughout the US and in London For more information, please visit www.quickplay.com.

For more information, please contact:

QuickPlay Media Inc.
Doug Fraim
fama PR
(617) 758-4176
quickplay@famapr.com

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